At what point would you drop umbrella policy?

[athena53]

I just got my Auto renewal. Up from $750 to $940 for 6 months, 500/500 liability limits. Wow.

I parsed it out and saw higher-than-usual increases (25%) on liability and physical damage but what hit me between the eyes was that about half the increase was in Underinsured Motorists (not Uninsured), which went from $34 to $139. I worked in the business. These increases have to be reviewed (with the underlying analyses) and approved by regulators. They can't just wave their hands and say, "Well, you know... COVID". This tells me that there are more drivers than ever with minimum limits and ever-higher jury awards.

Or maybe, as suggested earlier, the jury awards happen because the coverage is there.

Still, I feel like I can't win. I'm keeping the umbrella coverage because I like my house and the assets that support my extravagant travel budget.

 

[MarieIG]

I just got my Auto renewal. Up from $750 to $940 for 6 months, 500/500 liability limits. Wow.

I parsed it out and saw higher-than-usual increases (25%) on liability and physical damage but what hit me between the eyes was that about half the increase was in Underinsured Motorists (not Uninsured), which went from $34 to $139. I worked in the business. These increases have to be reviewed (with the underlying analyses) and approved by regulators. They can't just wave their hands and say, "Well, you know... COVID". This tells me that there are more drivers than ever with minimum limits and ever-higher jury awards.

Or maybe, as suggested earlier, the jury awards happen because the coverage is there.

Still, I feel like I can't win. I'm keeping the umbrella coverage because I like my house and the assets that support my extravagant travel budget.

Before I retired, I saw higher and higher awards being upheld, based upon injuries/ damages. This would be in the venue where I was practicing.

 

[engineernerd]

Before I retired, I saw higher and higher awards being upheld, based upon injuries/ damages. This would be in the venue where I was practicing.

How high, if you don't mind my asking?


Given that people can sue for lifetime lost earnings of their deceased family members, among other things, I am wondering how much protection even a $4 million or larger umbrella policy could provide.


I picture in my head that I run a red light or something and T-bone a schoolbus carrying a whole class of high school kids in the "gifted" program - or maybe a bus or van carrying a bunch of Harvard medical students - triggering a fire that kills them all... Seems in that case, I would exhaust my full multimillion umbrella policy AND lose all my attachable assets.

 

[MarieIG]

How high, if you don't mind my asking?


Given that people can sue for lifetime lost earnings of their deceased family members, among other things, I am wondering how much protection even a $4 million or larger umbrella policy could provide.


I picture in my head that I run a red light or something and T-bone a schoolbus carrying a whole class of high school kids in the "gifted" program - or maybe a bus or van carrying a bunch of Harvard medical students - triggering a fire that kills them all... Seems in that case, I would exhaust my full multimillion umbrella policy AND lose all my attachable assets.

It depends upon the injury, but yes, millions - for injuries to one person. It may depend upon the type accident (for example in NY a Labor Law case may have greater exposure than a trip and fall - it gets complicated). If an individual had a multimillion dollar policy, it increases the likelihood of the case (with a serious injury and liability exposure) settling. But, if you hit a bus full of Harvard medical students the bus driver, bus company, potentially the school, entity which owned the road, entity which designed the road, entity which maintained the road, utility company which maintained the light at the intersection which of course didn't work, abutting property owner whose hedges impeded the view of oncoming traffic etc. would be brought along for the ride. There are no guarantees, but you can try to increase your protection and reduce your exposure.

 

[tango2]

If you get in auto acc say with high priced car vet etc probably more than your ins covers. I assume if wreck was your fault , you can be sued for rest. Now add say a broken hip to it, possibly rehab And now loss of income for the person, can end up being 500,000 plus. I will keep my ub coverage You should really think about it as well